Oil dips as OPEC+ plan stokes supply-surplus concerns

By Anjana Anil and Emily Chow (Reuters) -Oil prices fell on Tuesday as another anticipated production increase by OPEC+ and the resumption of oil exports from Iraq's Kurdistan region via Turkey reinforced the outlook for a looming supply surplus. Brent crude futures for November delivery, expiring on Tuesday, fell 54 cents, or 0.8%, to $67.43 a barrel by 0320 GMT. The more active contract for December was down 53 cents, or 0.8%, at $66.56 per barrel. U.S. West Texas Intermediate crude was trading at $62.95 a barrel, down 50 cents, or 0.8%. The drops extend Monday's falls when both Brent and WTI settled more than 3% lower after logging their sharpest daily declines since August 1, 2025. Oil's falls came as Iraq's Kurdistan region resumed crude oil exports over the weekend and amid reports that OPEC+ is likely to approve an increase in production for November at its meeting this weekend, IG analyst Tony Sycamore wrote in a note to clients. In a meeting scheduled for Sunday, the Organization of the Petroleum Exporting Countries and allies including Russia, together known as OPEC+, will likely approve another oil production increase of at least 137,000 barrels per day, three sources familiar with the talks said. "Although (OPEC+ is) under their quota anyway, the market still does not seem to like the fact that more oil is coming in," Marex analyst Ed Meir said. Meanwhile, crude oil flowed on Saturday through a pipeline from the semi-autonomous Kurdistan region in northern Iraq to Turkey for the first time in 2-1/2 years, after an interim deal broke a deadlock, Iraq's oil ministry said. The market has remained cautious in recent weeks, balancing supply risks, mainly arising from Ukraine's drone attacks on Russian refineries, with concerns of oversupply and weak demand. Adding to the bearish sentiment, the potential risk of a U.S. government shutdown has raised demand concerns, said ANZ analysts in a note on Tuesday. A U.S. government shutdown could disrupt a wide range of services and delay economic data releases, including the Friday-scheduled payrolls report, which is crucial for decision-making by policymakers at the Federal Reserve. Elsewhere, U.S. President Donald Trump won Israeli Prime Minister Netanyahu's support for a U.S.-backed Gaza peace proposal, but Hamas's stance remained uncertain. (Reporting by Anjana Anil in Bengaluru and Emily Chow in Singapore; Editing by Muralikumar Anantharaman)

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